House GOP Wins Obamacare Lawsuit

A federal judge Thursday ruled the Obama administration has been improperly funding an Obamacare subsidy program, a stunning victory in a lawsuit filed by Republicans in the House against the White House.

Judge Rosemary Collyer, an appointee of President George W. Bush, ruled the administration doesn't have the power to spend money on "cost sharing reduction" payments to insurers without an appropriation from Congress, The Hill reports.

Collyer stayed her ruling so the administration can appeal the decision.

According to The Hill, billions of dollars in "cost sharing reduction payments" under Obamacare are at issue; the subsidies are paid to insurance companies so they can reduce out of pocket costs such as deductibles for low income people on Obamacare plans.

The House GOP argued the administration was unconstitutionally spending money without an appropriation from Congress.

The administration countered it didn't need an appropriation from Congress because the funds were already permanently appropriated by the Affordable Care Act's tax credits section.

The judge disagreed.

"Such an appropriation cannot be inferred," Collyer wrote. "None of Secretaries' extra-textual arguments — whether based on economics, ‘unintended' results, or legislative history — is persuasive," the judge ruled, The Hill reports.

"The Court will enter judgment in favor of the House of Representatives and enjoin the use of unappropriated monies to fund reimbursements due to insurers under Section 1402."

A federal judge Thursday ruled the Obama administration has been improperly funding an Obamacare subsidy program, a stunning victory in a lawsuit filed by Republicans in the House against the White House.